‘Sharp’ and ‘shoddy’ practices see scores of foreign villa buyers lose millions out of pocket as Costa del Sol developer collapses

By Jon Clarke and Walter Finch

LAWYERS have been joined by mortgage brokers and brokers in criticizing a giant construction company that has left 100 foreign buyers “probably tens of millions” of euros disbursed.

Urgent legal moves are underway after all Otero firm projects came to a halt on the Costa del Sol, Olive Press can reveal.

Countless companies and hundreds of workers have pulled the sites after Otero defaulted on his payments on January 25.

Dozens of clients have called lawyers demanding to know what has happened to their investments in luxury villas of between 500,000 and 2 million euros.

A law firm, Martínez-Echevarría, confirmed that it represented ‘around 20 clients’ who had bought properties in Marbella, Estepona and Manilva.

“Most of them are foreigners, English, Dutch and Belgian, etc., but what unites them is that they have all paid a lot of money, up to 2 million euros each,” lawyer Fermín Sigüenza told Olive Press.

He added that his company also represented various agents and contractors.

“We don’t know how much we can recover or if customers are protected. It’s early, but we’re doing our best.”

Meanwhile, a Marbella-based mortgage broker, Tancrede de Pola, revealed that he was helping four clients, who have lost.

“They’re really screwed, especially since unpaid contractors are taking everything movable off sites, including windows and even kitchens.”

He continued: “I didn’t like the way Otero operated from the beginning and tried to tell the agents not to work with them because of their sharp practices.”

The Olive Press has spoken with workers from at least three companies that remove their materials from a site, called Oceanic, in Manilva.

A Fartech employee claimed that “more than a million euros” is owed to companies on this site alone.

The Cádiz firm is owed ‘at least’ 150,000 euros for the security equipment of the 24 homes, 20 of which have already been sold for between 1.3 and 1.8 million euros.

“It’s a great success for us,” explained the Argentine, who gave his name as Mario. “But there are many more vendors and companies that have lost more than Fartech.

“Some are owed €500,000, others up to a million.”

He added: “It’s a total joke that they raided this area, put up some concrete structures, and then it all came crashing down on January 25th when checks stopped cashing.

“We have heard rumors that the owners have fled to Venezuela, but nobody knows.”

The Olive Press learned that the company had failed to pay its suppliers for the first time the previous month in December, just two months after the company sponsored a huge glitzy charity party for cancer research in Marbella.

A month later, in November, it boasted of having won no fewer than eight awards at the Newbuild Awards Costa del Sol, including ‘Best Promoter’. “We were great,” a press release shouted over an image of Chief Ruben holding a gong.

Meanwhile, a Christmas message from the company insisted that 2022 had been “full of success, achievement and joy”, while on January 12 the company announced that it had hired a new sales consultant, Nicholas Roberts.

This week, however, an employee who works at the company’s office in Marbella confirmed that ‘all projects were stopped about 10 days ago’.

“It’s a real shame and we’re trying to resolve the issues, which are difficult,” he said, passing on an email to the company’s lawyer, who has so far declined to comment.

An agent for his Oceanic development, Mario Ballesteros, was more forthcoming.

“I’m also in limbo and just found out I’ve been on vacation,” he told Olive Press. “While I’m not directly responsible, I feel sad for all the buyers, but I may also be out of a job.”

He continued: “I don’t know exactly what happened, but I haven’t seen the owner Ruben for months. I don’t know what will happen next.”

He confirmed that of the 20 buyers of the development, all were foreigners. “Only four had not been sold.”

The Manilva City Council, for its part, offered guarantees to the companies affected by the extinct urbanizations, understood as Duquesa Valley, La Paloma and Don Amaro, so that they can finish the units.

A spokesman admitted there were “many casualties” but added that he wanted the area to be “livable” for those who had purchased.

He added that the city council would be working “side by side” with the contractors to “minimize” the problems caused by the collapse of Otero.

when pressed by the olive press on the level of support they would offer, the council responded that “it all depends on how events unfold.”

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